Those who have watched my videos on YouTube for the last few months have seen that I've been on top of this pair all along. The move higher from 107.30 was called corrective by me and therefore the bias bigger picture was stil bearish and not bullish. The short from 113 was not expected by most traders but it was phenomenal and explained in detail prior to the move, the dollar correction vs all majors was called BUT I said; the USDJPY has unfinished business and will continue lower where the dollar will gain strenght vs the other majors.
The bigger picture has not changed during that time. However, I do not only look at patterns because that might result in several valid patterns. This is where I differ from others and this is something you hardly learn as a retail trader.
So short term traders (scalpers/intra day traders) could have shorted USDJPY every single time by means of trading with the trend 'aka' the way of least resistance. The longer term traders did not have to close their profitable short trades. So hope that helps for those asking me how you could trade a move lower with so many overlaps, simply it depends on your style, swing or scalp. Selling low and hold is not either of the two styles.
Buying was a waste of time up to the moment that the minimum requirements are fulfilled. Those minimum requirements have been fulfilled and I will be looking for the move higher for what I label to be wave C. The bottom for what I label 'B' is not yet confirmed so I described both scenario's in the 1hr chart, short-medium term.
Safe trades!
Kommentar
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New video has been uploaded. Safe trades and have a nice weekend!
I feel the sellers have it...I won't be personally going long till I see a dbl bottom entry. Too much pressure on the shoulder of the dollar for it to make a great reversal on a single legged 'hop' back to the top. Its going to need two legs for this.
bgm
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Thanks for the great analysis. You often mention "minimum requirements". What are the "minimum requirements"?
TimStuyts
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@bgm, That depends,in this example of USDJPY the minimum requirements were 'taking out the low' before anticipating a high probability bullish reversal.